Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover ..........= 3.35
Question:
Assuming the following ratios are constant, what is the sustainable growth rate?
Total asset turnover ..........= 3.35
Profit margin ......................= 7.6%
Equity multiplier ...............= 1.25
Payout ratio ........................= 70%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
We must first calculate the ROE using the DuPont ratio to calculate the sustainab...View the full answer
Answered By
Sayeed Ahmed
My career started as Asst Professor in the Dept. Of Biotechnology. Still now i guided nearly thousand students. I have experience in teaching biology related fields like Microbiology, Genetics, Immunology, etc
0.00
0 Reviews
10+ Question Solved
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
What is a sustainable growth rate for a company? Of what value is sustainable growth modeling?
-
What is the sustainable growth rate and required return for Abbott Laboratories? Using these values, calculate the 2008 share price of Abbott Laboratories Industries stock according to the constant...
-
Sustainable Growth assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 1.90 Profit margin= 7.6% Equity multiplier = 1.40 Payout ratio = 40%
-
The registrar at a prominent northeastern university recently scheduled an instructor to teach two different classes at the same exact time. Help the registrar prevent future mistakes by describing a...
-
Refer to the results of the 2009 North American Hotel Guest Satisfaction Index Study referenced in Exercise 4.48. Recall that 66% of hotel guests were aware of the hotel's "green" conservation...
-
Absorption Costing Unit Product Cost and Income Statement Refer to the data in Exercise 78 for Chuck Wagon Grills. Assume in this exercise that the company uses absorption costing. Required: 1....
-
The difference between merchandise available for sale and the end-of-period merchandise inventory is called (a) gross profit. (c) net sales. (b) net purchases. (d) cost of goods sold.
-
Error Corrections you have been assigned to examine the financial statements of Zarle Company for the year ended December 31, 2010. You discover the following situations. 1. Depreciation of $3,200...
-
7/2 Amos pays Better Grounds Wholesale Supply in full by issuing check # 1007. 7/2 Amos pays Git'n GO in full (Check #1008). 7/11 Amos performs lawn care services as agreed for Don Notting. 7/15 Amos...
-
Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price...
-
If the SGS Corp. has an ROE of 13.8 percent and a payout ratio of 20 percent, what is its sustainable growth rate?
-
The most recent financial statements for Incredible Edibles, Inc., are shown here (assuming no income taxes): Assets and costs are proportional to sales; debt and equity are not. No dividends are...
-
Accounting is all about numbers. Evaluate.
-
The city of Dixon, Illinois has dramatically changed many of its practices to ensure nobody has the extent of power Rita had to commit fraud for so long. After she was fired, the city hired a new...
-
Zappos remains committed to serving its customers and employees. So far, the company has retained its unique culture and continues to expand into new product categories. In one interview, Hsieh...
-
Lululemon focuses much of its efforts on the legacy that it will leave behind (the legacy it is creating now for future generations). Throughout the years, Lululemon has created a culture of...
-
Whole Foods strives to be a profitable company while also maintaining an ethical standpoint when making decisions related to its customers, employees, and all affected stakeholders. Consistently...
-
New Belgium Brewing Companys efforts to embody a sustainability-oriented business has paid off with a very loyal followingin fact, the company expanded the number of tours it offers of its facilities...
-
Ball-Mart sells thousands of different products. Last year, sales were $10,000,000 and profit was $1,000,000. Management has determined that Ball-Mart's fixed costs are $3,000,000. What is...
-
Test whether the 5-year survival rate for breast cancer is significantly different between African American and Caucasian women who are younger than 50 years of age and have localized disease....
-
Depreciation Given the choice, would a firm prefer to use MACRS depreciation or straight-line depreciation? Why?
-
Depreciation Given the choice, would a firm prefer to use MACRS depreciation or straight-line depreciation? Why?
-
Net Working Capital In our capital budgeting examples we assumed that a firm would recover all of the working capital it invested in a project. Is this a reasonable assumption? When might it not be...
-
Q = Volume flow rate, = find, P= find E, the velocity of approach factor, can be calculated with E = 1 / sqrt(1-B^4) E = 1 1-B4 requires knowledge of the product CE. The beta ratio is = do/d1 Then,...
-
Q = Volume flow rate, = find, P= find E, the velocity of approach factor, can be calculated with E = 1 / sqrt(1-B^4) E = 1 1-B4 requires knowledge of the product CE. The beta ratio is = do/d1 Then,...
-
With the explosion of educational software, multimedia, digital media, apps, and the Internet, educators still are pondering the best use for computers in the classroom. Drill and Practice? Problem...
Study smarter with the SolutionInn App